Samsung is expected to report third-quarter operating profit of 106.1 trillion won ($79.1 billion), nearly nine times the year-earlier figure, while its memory-chip margin is forecast to remain flat at 76%.
Analysts expect Samsung Electronics to post operating profit of 106.1 trillion won ($79.1 billion) for July-September, up from 12.17 trillion won a year earlier. The estimate has been cut 7.7% since the end of August. Samsung is due to provide preliminary results on Thursday, with detailed data expected in late October.
Memory-chip prices continued to rise in the third quarter, but at a slower pace, while a stronger won is also a headwind for overseas earnings. TrendForce expects conventional DRAM contract prices to rise 10% to 15% in the fourth quarter, compared with a roughly 60% surge in the second quarter. Samsung's memory-chip operating margin is expected to be 76%, unchanged from the preceding quarter.
Samsung is expected to increase sales of high-bandwidth memory chips and narrow its gap with market leader SK Hynix. J.P. Morgan estimates Samsung's HBM market share will rise to 34% this year from 20% last year, while SK Hynix's share is forecast to fall to 46% from 60%.
